Bank of America Corp DE Has $1.09 Billion Stock Position in Synchrony Financial $SYF

Key Points

• Bank of America trimmed its Synchrony Financial stake by 0.6% in the first quarter, but still held 16.06 million shares worth approximately $1.09 billion, representing 4.78% of the company. Institutional investors and hedge funds collectively own 96.48% of SYF.
• Synchrony exceeded quarterly earnings expectations with EPS of $2.59 versus the $2.14 consensus estimate and maintained fiscal 2026 guidance of $9.25–$9.50 per share. Analysts have a “Moderate Buy” consensus rating and an average price target of $87.72.
• The company raised its quarterly dividend to $0.34 per share, or $1.36 annually, yielding about 1.8%. Near-term risks include several downward revisions to quarterly EPS forecasts, a $1.1 billion senior-notes issuance that increases debt, and insider selling.

Bank of America Corp DE cut its position in Synchrony Financial (NYSE:SYF - Free Report) by 0.6% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 16,064,618 shares of the financial services provider's stock after selling 93,492 shares during the quarter. Bank of America Corp DE owned 4.78% of Synchrony Financial worth $1,092,715,000 as of its most recent SEC filing.

Other hedge funds have also recently made changes to their positions in the company. State Street Corp increased its holdings in Synchrony Financial by 1.0% in the third quarter. State Street Corp now owns 19,080,903 shares of the financial services provider's stock valued at $1,355,698,000 after purchasing an additional 191,920 shares during the period. Morgan Stanley lifted its holdings in Synchrony Financial by 7.6% during the 4th quarter. Morgan Stanley now owns 6,230,111 shares of the financial services provider's stock worth $519,778,000 after buying an additional 442,226 shares during the period. Dimensional Fund Advisors LP grew its position in shares of Synchrony Financial by 6.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 6,039,753 shares of the financial services provider's stock valued at $410,760,000 after buying an additional 365,353 shares during the last quarter. Invesco Ltd. grew its position in shares of Synchrony Financial by 10.4% in the 4th quarter. Invesco Ltd. now owns 5,490,921 shares of the financial services provider's stock valued at $458,108,000 after buying an additional 517,781 shares during the last quarter. Finally, First Trust Advisors LP increased its stake in shares of Synchrony Financial by 5.6% in the first quarter. First Trust Advisors LP now owns 5,338,110 shares of the financial services provider's stock valued at $363,098,000 after buying an additional 281,451 shares during the period. 96.48% of the stock is owned by institutional investors and hedge funds.

Key Synchrony Financial News

Here are the key news stories impacting Synchrony Financial this week:

• Positive Sentiment: Long-term earnings outlook improved: Zacks Research raised its FY2028 EPS forecast to $11.57 from $10.89 and increased its FY2026 estimate slightly to $9.35 from $9.33. The FY2026 figure is in line with the broader consensus forecast. Zacks Research earnings estimates
• Neutral Sentiment: Synchrony issued $1.1 billion of senior notes: The financing, launched under an underwriting agreement dated July 28, provides additional capital but also increases the company’s debt obligations and future interest expense. Synchrony Financial Issues $1.1 Billion Senior Notes
• Neutral Sentiment: Truist maintained its Hold rating: The reaffirmation indicates no change in the analyst’s view, limiting the potential for a fresh positive catalyst. Truist Financial Reaffirms Hold Rating
• Negative Sentiment: Several near-term EPS forecasts were cut: Zacks lowered its Q3 2026 estimate to $2.40 from $2.55, Q1 2027 to $2.32 from $2.42, Q3 2027 to $2.93 from $3.02, and Q1 2028 to $2.63 from $2.67. These reductions suggest some caution about Synchrony’s nearer-term earnings momentum, despite the stable $9.35 FY2026 consensus forecast.

Analyst Ratings Changes

A number of brokerages have recently issued reports on SYF. Loop Capital started coverage on shares of Synchrony Financial in a research report on Friday, May 22nd. They issued a "hold" rating and a $81.00 price target on the stock. Weiss Ratings reissued a "buy (b-)" rating on shares of Synchrony Financial in a research note on Friday, July 17th. JPMorgan Chase & Co. decreased their price target on shares of Synchrony Financial from $81.00 to $78.00 and set a "neutral" rating for the company in a research note on Monday, July 13th. Royal Bank Of Canada cut their price objective on shares of Synchrony Financial from $85.00 to $80.00 and set a "sector perform" rating on the stock in a research report on Wednesday, July 22nd. Finally, BTIG Research cut Synchrony Financial from a "buy" rating to a "neutral" rating in a research note on Wednesday, April 22nd. Twelve equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat, Synchrony Financial has a consensus rating of "Moderate Buy" and an average price target of $87.72.

Insider Transactions at Synchrony Financial

In other Synchrony Financial news, insider Jonathan S. Mothner sold 51,258 shares of the firm's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $71.23, for a total value of $3,651,107.34. Following the completion of the sale, the insider directly owned 132,664 shares of the company's stock, valued at $9,449,656.72. This trade represents a 27.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.36% of the stock is owned by corporate insiders.

Synchrony Financial Trading Down 1.7%

Shares of SYF stock opened at $75.82 on Friday. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.22 and a current ratio of 1.22. The company has a market capitalization of $24.67 billion, a price-to-earnings ratio of 7.77, a PEG ratio of 0.72 and a beta of 1.32. Synchrony Financial has a 52-week low of $63.08 and a 52-week high of $88.77. The company has a 50-day simple moving average of $73.78 and a two-hundred day simple moving average of $72.66.

Synchrony Financial (NYSE:SYF - Get Free Report) last released its earnings results on Tuesday, July 21st. The financial services provider reported $2.59 EPS for the quarter, topping analysts' consensus estimates of $2.14 by $0.45. The company had revenue of $3.72 billion for the quarter, compared to analysts' expectations of $3.72 billion. Synchrony Financial had a return on equity of 23.09% and a net margin of 15.44%.During the same period in the previous year, the business posted $2.50 EPS. Synchrony Financial has set its FY 2026 guidance at 9.250-9.500 EPS. Research analysts anticipate that Synchrony Financial will post 9.35 EPS for the current fiscal year.

Synchrony Financial Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 17th. Shareholders of record on Wednesday, August 5th will be issued a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a yield of 1.8%. This is a positive change from Synchrony Financial's previous quarterly dividend of $0.30. The ex-dividend date of this dividend is Wednesday, August 5th. Synchrony Financial's dividend payout ratio is currently 12.30%.

Synchrony Financial announced that its Board of Directors has approved a share buyback plan on Tuesday, April 21st that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the financial services provider to purchase shares of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Synchrony Financial Company Profile

Synchrony Financial NYSE: SYF is a consumer financial services company that specializes in providing point-of-sale financing and private-label, co-branded and branded credit card programs. The company serves as a payments and lending partner to retailers, digital merchants and service providers, offering consumer financing solutions designed to drive customer engagement and sales. Synchrony also operates a direct bank that offers deposit products, including savings accounts and certificates of deposit, which support its funding and customer-facing product suite.

Its core product set includes private-label and co-branded credit cards, general-purpose credit cards, installment loan programs and promotional financing options that are integrated into merchants' checkout experiences.

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